Unit 1: The Business Environment Business Purposes

Business purposes: Supply of products or services Supplying products or services for a profit Supplying at or below cost (not for profit)

Business examples: Businesses that have developed in response to increased demand: Hair salons Coffee shops

Activity: Produce a 3 column table that includes a range of different businesses (at least 5), the product or service supplied and the consumer need that is satisfied by each one Product or serviceWant or need satisfied Business Internet music download For entertainmentOnline music store SandwichHungerBakery or supermarket Tooth fillingBecause a filling had come out & was painful Dentist

Profit: Most businesses are set up to make a profit. Money received from sales must cover all running costs Prices must be higher than cost of supplying goods & services Example: Tesco is responsible for £1 in every £7 of retail sales in the UK, but it only makes 7p profit per £ of goods sold

Profit: A bookshop sells a dictionary for £20. They paid the supplier £12. However, the difference of £8 is not all profit. What other costs does the bookshop have?

At or below cost/Not for profit: When money received from selling a product is equal to or below the cost of supplying that product Examples: England Netball Association offer schools low- cost seats at games in order to increase interest in the sport Leisure centres offer free swimming for under 16’s and over 60’s – money is generated from those customers who do pay